The coastal waters off British Columbia fell silent this week as Grieg Seafood, a major player in Canada’s salmon farming industry, announced its complete withdrawal from Canadian operations. In a landmark $1.1-billion transaction, the Norwegian-based company has sold its entire BC salmon farming business to competitor Cermaq, marking one of the largest aquaculture deals in Canadian history.
“This decision wasn’t made lightly,” said Andreas Kvame, CEO of Grieg Seafood, during the announcement in Vancouver. “After careful strategic review, we’ve chosen to consolidate our global operations and focus on our core markets in Norway and the UK.”
The deal encompasses all 22 of Grieg’s farm licenses in British Columbia, its processing plant in Campbell River, and approximately 800,000 fish currently in various growth stages across the company’s operations. For the 350 employees at Grieg’s Canadian division, the announcement brings uncertainty as Cermaq evaluates staffing needs during the transition.
This significant industry consolidation comes amid mounting regulatory challenges for salmon farmers in Canadian waters. The federal government’s commitment to phase out open-net pen salmon farming in BC coastal waters by 2025 has created what industry insiders describe as an “impossible business environment.”
Mitsubishi-owned Cermaq, already operating 25 farm sites in British Columbia, views the acquisition as an opportunity to strengthen its position in the North American market despite the regulatory headwinds. “We believe in the future of sustainable aquaculture in Canada,” stated Steven Rafferty, Cermaq’s global CEO. “This acquisition allows us to achieve economies of scale that make adaptation to new regulations more feasible.”
The deal reflects broader tensions within Canada’s $1.2-billion salmon farming sector, which has found itself caught between environmental concerns and economic realities. Indigenous communities with territorial claims to coastal waters have expressed mixed reactions, with some opposing salmon farming entirely while others have established partnerships with the industry.
“We recognize this transaction raises questions about the future direction of aquaculture in our territories,” said Chief Harold Sewid of the Qwe’Qwa’Sot’Em First Nation, which had a partnership agreement with Grieg. “We’re in discussions with Cermaq to ensure our environmental standards and economic interests are respected in this transition.”
For British Columbia’s coastal communities, where salmon farming provides approximately 7,000 direct and indirect jobs, Grieg’s exit signals potential economic upheaval. Port McNeill Mayor James Furney expressed concern: “When a major employer leaves, the ripple effects touch everything from housing markets to school enrollments. We’re waiting to see if Cermaq’s presence will maintain the economic stability these operations have provided.”
Industry analysts suggest this consolidation may be just the beginning. “We’re likely to see further concentration in Canadian aquaculture as companies adapt to the regulatory landscape,” explained Jennifer Thompson, fisheries economist at the University of British Columbia. “Only the largest players with significant capital resources can afford the technological adaptations required by new environmental standards.”
As the transaction awaits regulatory approval, expected by mid-2023, both companies have committed to maintaining operations without immediate disruption. The long-term implications, however, remain as murky as the debate over salmon farming itself – a complex balance of environmental stewardship, economic development, and food security that continues to challenge Canada’s coastal communities.
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